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Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is

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Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 5% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. Sales $15,000,000 Operating income 1,500,000 Total assets 3,500,000 Current liabilities 830,000 What is the division's Residual Income (RI)? O A. $6,000,000 OB. $450,000 O c. $1,325,000 OD. $530,000

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